The benefits of BIDs

The number of Business Improvement Districts (BIDs) in London has grown over recent years, but have they been a success?

A major benefit of BIDs is their ability to respond quickly to local priorities with the mandate of local businesses. They have demonstrated value in making improvements to high streets, but there are concerns around their accountability to local communities and that they may be asked to step in and fill gaps left by local councils.

The London Assembly Regeneration Committee report ‘Business Improvement Districts: The role of BIDs in London’s regeneration’ published today finds that BIDs have the potential to deliver significant local improvements, despite regeneration not being their core remit. They can work in constructive partnership with local authorities, but they need stronger governance and accountability. They should be instigated by the business community, rather than local councils or the Mayor of London and it is important that their activity complements local councils, rather than replace their function.

The report makes a number of recommendations:

• The next Mayor should establish a London Standard for BIDs and encourage all BIDs in London to sign up to a set of principles governing management. Minimum turnout thresholds should be introduced when establishing a London BID and landowners should be encouraged to be involved.
• The next Mayor should continue to fund BIDs in the set-up phase, where there is local business demand for them, but the Greater London Authority (GLA) should also use funding to support a diversified offer to established BIDs.
• The next Mayor should investigate options for a coaching programme for new BIDs, so they can receive support from more established BIDs.

Gareth Bacon AM, Chairman of the Regeneration Committee, said:

“High streets and town centres in London need to thrive and some really have to be revitalised. Local businesses should have an important part to play in this. Business Improvement Districts will continue to grow their influence, but there are important questions about their role and accountability and how they engage with businesses, local boroughs and residents.

We need to ensure the next Mayor promotes good governance and management for BIDs. They should be trusted partners in revitalising London’s high streets.”